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The Evolution of the B2B Enterprise
Earlier this week reader Ben Hill emailed me a question:
“I have observed that companies that have a primarily B2B model are diminishing. The old B2Bers that are adapting to reach their B2C market segments are the ones that seem to be surviving. The companies that are strategically targeting the B2C as a part of their core business are actually growing. Am I wrong about this? If not, am I the last one on the planet to recognize this?”
I think Ben makes a good point about B2B companies seeing growth by targeting end users directly. However, that doesn’t necessarily mean that they’re eliminating channel partners. In many cases the relationship is evolving to take advantage of new technologies and create a win-win for everyone involved. When I mentioned this to him in my reply, he agreed.
What’s your opinion on the evolving B2B organization?
Graham,
I think that the B2B2C approach you're discussing is one that has great potential -- especially if dealer and manufacturer truly partner and share consumer and market insight for their benefit as well as for the benefit of the end consumer.
Ardath,
Yes, we're definitely seeing the companies are starting to recongize the importance of the team-sell/team-buy approach, and market accordingly. One IT company I know of targets its marketing to several "customer groups," including users, purchasing managers, C-level executives, etc., and has greatly improved sales, attendance at customer events, and satisfaction as a result.
Ginger,
I think that B2B companies are realizing that they are interacting with "people" instead of just companies and that is the difference - the approach.
With consensus groups becoming larger, the sale now has to address value to the many different types of people in the group and make sure they are delivering value to each of them, as well as the company overall. This requires them to combine B2C type efforts with B2B thinking.
Could that be the difference you are seeing?
Ginger
Here's my automotive take on this B2B vs B2C question.
In Europe, for historical and legal reasons, most automakers go to market through their retailer network. Most retailers are independently-owned and since 2002 have been free to sign-up with any automaker they want.
The old model was a B2B...2C one, where automakers provided vehicles, financial 'support' and national marketing to help move the metal. The retailers were responsible for sales, service and local marketing.
This is gradually morphing to a more dynamic model where automakers stil provide vehicles, support and national marketing, but also provide a whole range of, often on-demand targeted or local marketing support too. This true B2B2C is proving much more effective than the old compartmentalised one.
Graham Hill
Independent CRM Consultant
Interim CRM Manager